Martin Shkreli, a former drug company CEO, was convicted on three securities fraud charges. The ruling, handed down Friday, came after a jury found Shkreli, aka “Phama Bro,” guilty on three of eight counts in a federal fraud trial.
Prosecutors said Shkreli funneled money from investors contributing to two of his failed hedge funds, MSMB Capital and MSMB Healthcare, into his drug company, Retrophin. According to prosecutors, after funneling money away from the hedge funds, he used money from Retrophin to pay investors back. The defense said investors even made profits.
The eight counts against Shkreli included: securities fraud in connection with MSMB Capital, securities fraud in connection with MSMB Healthcare, conspiracy to commit securities fraud in connection with Retrophin, conspiracy to commit securities fraud in connection with MSMB Capital, conspiracy to commit wire fraud in connection with MSMB Capital, conspiracy to commit securities fraud in connection with MSMB Healthcare, conspiracy to commit wire fraud in connection with MSMB Healthcare and conspiracy to commit wire fraud in connection with Retrophin.
The 34-year-old was found guilty of the three securities-fraud charges, and not guilty of the five conspiracy-to-commit-securities-fraud charges. He faces up to 20 years in prison, according to reports.
Shkreli was associated with a controversial decision to drastically raise the price of a life-saving AIDS treatment called Daraprim. After buying up all of the drug, he raised the cost by over 5,000 percent overnight, affecting not only AIDS patients, but also cancer patients and pregnant women.
Shkreli displayed no remorse for the act, and, after he testified at a House Oversight Committee hearing on rising drug prices in 2016, called lawmakers “imbeciles” on Twitter.
Hard to accept that these imbeciles represent the people in our government.
— Martin Shkreli (@MartinShkreli) February 4, 2016
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